Add sharpe ratio as loss function
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@@ -151,6 +151,20 @@ The above setup expects to find ADX, RSI and Bollinger Bands in the populated in
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When you want to test an indicator that isn't used by the bot currently, remember to
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add it to the `populate_indicators()` method in `hyperopt.py`.
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## Loss-functions
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Each hyperparameter tuning requires a target. This is usually defined as a function, which get's closer to 0 for increasing values.
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By default, freqtrade uses a loss function we call `legacy` - since it's been with freqtrade since the beginning and optimizes for short trade duration.
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This can be configured by using the `--loss <value>` argument.
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Possible options are:
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* `legacy` - The default option, optimizing for short trades and few losses.
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* `sharpe` - using the sharpe-ratio to determine the quality of results
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* `custom` - Custom defined loss-function [see next section](#using-a-custom-loss-function)
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### Using a custom loss function
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To use a custom loss function, make sure that the function `hyperopt_loss_custom` is defined in your custom hyperopt class.
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